Grainger (LON:GRI) Releases Earnings Results

Grainger (LON:GRI) released its quarterly earnings results on Thursday. The company reported GBX 4.20 EPS for the quarter, Digital Look Earnings reports. Grainger had a net margin of 77.24% and a return on equity of 10.25%. The company had revenue of £113.70 million for the quarter.

Here are the key takeaways from Grainger’s conference call:

• Grainger reaffirmed full-year guidance for EPRA earnings of GBP 60 million in FY2026, up 12%, and still expects GBP 72 million by FY2029, despite higher interest rates and macro uncertainty.
• Half-year operating performance remained strong, with rental income up 7.8%–8%, like-for-like rental growth of 3.1%, occupancy at 96%, and EPRA earnings up 4%.
• The company emphasized a major deleveraging plan, targeting a GBP 300 million–GBP 350 million reduction in net debt by FY2029, helped by GBP 850 million of non-core assets available for disposal.
• Grainger said its committed pipeline of 775 homes will deliver about GBP 40 million of net rent and drive future growth, with only GBP 120 million left to spend to complete it.
• Management noted EPRA NTA fell 2.7% to GBP 2.90 per share due to valuation pressure, but argued that rental growth has helped cushion the impact from higher yields and that the balance sheet has been de-risked through refinancing.

Grainger Stock Performance

GRI stock traded up GBX 1.50 on Thursday, reaching GBX 156.70. 7,470,174 shares of the company were exchanged, compared to its average volume of 3,705,954. Grainger has a 12 month low of GBX 118.30 and a 12 month high of GBX 230. The stock’s fifty day moving average price is GBX 168.36 and its 200 day moving average price is GBX 181.40. The firm has a market capitalization of £1.16 billion, a PE ratio of 5.74, a PEG ratio of 1.51 and a beta of 0.78. The company has a debt-to-equity ratio of 78.26, a current ratio of 2.71 and a quick ratio of 0.87.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. Berenberg Bank reissued a “buy” rating and issued a GBX 285 price target on shares of Grainger in a research report on Thursday. Citigroup dropped their target price on shares of Grainger from GBX 298 to GBX 253 and set a “buy” rating on the stock in a research report on Thursday, April 2nd. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of GBX 252.

About Grainger

Founded in Newcastle upon Tyne in 1912, Grainger plc, a FTSE 250 business, is the UK’s largest listed residential landlord, a Real Estate Investment Trust (REIT) and a leader in the fast-growing build-to-rent sector, providing c.11,000 rental homes to over 25,000 customers. With a pipeline of secured build-to-rent development projects totalling c.4,300 homes and £1.3bn, Grainger is creating thousands more rental homes by investing in cities across the UK.

Grainger works in partnership with a large number of public sector organisations to deliver new homes to local communities, including Transport for London, Network Rail, the Ministry of Defence, Lewisham Borough Council and the Local Pensions Partnership.

The Grainger team is dedicated to the common purpose of Renting Homes, Enriching Lives, backed by a set of core values.